Protected: THE GIFT TAX UNIFIED CREDIT EXPLAINED AND MAXIMIZED

The Unified Credit Exemption is the amount of assets with which a person can die and pay no estate tax. In 2009 the exemption is $3,500,000. In 2010, the estate tax is repealed for one year (not the gift tax), and comes back in 2011 to the law that was in effect when George W. Bush first became President; an exemption of $1,000,000 and a tax rate of 55%. Various tax bills have been introduced, a number of which keep the tax rate at 45% and the exemption at $3,500,000. There is also talk that even if legislation is not enacted until 2010, it will be made retroactive to January 1, 2010. At this point it is up in the air. One thing is certain; the country needs more money to reduce our massive deficits. It is therefore likely that the estate tax will be a problem for many years to come.

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